Forex Trading Explanation - Halal or Haram?

A comment from a brother Abdul in the belo article link:

Islamic law prohibits charging interest when you lend money. But it is all right to borrow money (without paying any interest) and use them to run your business. And this is exactly what leverage in forex does. Yes, you have to repay the borrowed money back to the forex broker even if your trade is not profitable. But you would do the same if you were a barber and took a loan from a bank or from your uncle. Leverage is not against Islam!


And spread is not against Islam either. You pay few pips as a transaction fee. You always pay transaction fees when you are moving money (or goods) around. This is all right.

The only thing that it against Islam is rollover interest. But you can avoid it if you use a forex broker with a swap-free account. The article is right in this regard.

Link: http://www.forex-learning-site.com/blog/2008/5-cheapest-forex-brokers-with-islamic-swap-free-accounts/